The European Union will launch a €20 million peace initiative and provide up to €200 million in grants to strengthen transport, energy and digital connectivity across the South Caucasus.

European Commission President Ursula von der Leyen announced in Baku that the European Union is launching a new €20 million programme aimed at promoting peace in the region. She made the remarks during a joint press statement with Azerbaijani President Ilham Aliyev.

She also outlined projects in healthcare, agriculture and water management, APA reported.

"Today, I would like to announce a new €20 million programme to support peace. We want to help strengthen peace across the region and ensure that its benefits become visible and tangible in the daily lives of people living in border areas. For example, we will invest in improving healthcare services by purchasing ambulances. To enhance security, we will support demining efforts. We will also invest in building stronger local communities through rural development, water resource management, precision agriculture and other initiatives. Support for small and medium-sized enterprises will also be an important part of this programme," von der Leyen said.

She also announced that the European Union will provide grants of up to €200 million to develop transport, energy and digital connectivity in the South Caucasus.

According to von der Leyen, potential projects could include establishing a railway link through Nakhchivan and developing the Port of Baku, APA reported.

"Under our Global Gateway investment strategy, we will allocate up to €200 million in grants for transport, energy and digital connectivity projects across the South Caucasus. This could help mobilize up to €2 billion in investment from both the public and private sectors," she said.

Following her visit to Azerbaijan, European Commission President Ursula von der Leyen is expected to travel to Yerevan.